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K Fred
New Member

1099 C for deceased family member

My adult child passed away in 2020 but received 1099 C's totaling $9700 (write off of credit card debt) in 2021 and a small state tax refund of $400 in 2021 for 2020 taxes.  Turbotax will not let me enter her 2020 date of death and complete the return.  Do I even need to file for her since the total 'income' is below the standard deduction amount?  Would I need to file in the state of Calif?

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2 Replies
PattiF
Expert Alumni

1099 C for deceased family member

If you received a 1099-C for 2020 with your adult child's name and social security number, you  have nothing to report. The state tax refund does not need to be reported on a tax return.

Your daughter's final return was filed in 2020. There is no way to report this 1099-C on a 2021 tax return. This does not need to be filed in California either.

 

 

If there was an estate established for her, the cancelled debt would be income to the estate.

 

 

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1099 C for deceased family member

First - sorry for the loss of your loved one. 

Cancellation of debt is normally included in income but since your child is below the filing threshhold no return is necessary.

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